Vietnam’s economy lures New Zealand exporters

Illustrative photo (Source: VNA)

Hanoi (VNA) - Vietnam is emerging as a good optionfor Kiwi exporters looking to diversify where they sell their goods, said New Zealand’snew site 1news.co.nz in a recent article.

The article cited the Ministry of Foreign Affairs and Tradeof New Zealand’s report prepared by the Embassy in Hanoi as saying between 2016and 2021, Vietnam led ASEAN in terms of growth per capita. This growth rate ishigher than that of other major ASEAN markets such as Singapore, Malaysia, orthe Philippines

Trade Commissioner Joseph Nelson said Vietnam is a"frontier market" presenting new opportunities, and challenges, toKiwi exporters looking to diversify.

"As Vietnam has come out of its COVID waves, we areseeing a really strong bounce back in the economy. GDP is expected to bebetween 6.5% to 7.5% next year," he said as quoted by the article. "Allthe markets in Southeast Asia are bouncing back quite strongly, but Vietnamdefinitely is the best performing market at this point."

Comments by Chairman and CEO of the KPMG Vietnam WarrickCleine was also cited as saying since the free trade agreements were set upbetween New Zealand and Vietnam, their two-way trade value has grownsignificantly to about 2 billion USD this year.

He said there are three key things in the Vietnamese marketthat will be attractive to New Zealand businesses, namely the local consumermarket, a safe geo-political position, and a great free-trade network.

At present, food and beverage products make up almosttwo-thirds of New Zealand exports to Vietnam. And there's appetite for more, asconsumers there have become more health conscious post COVID.

Fonterra’s head of global foodservice Paul Harvey said theVietnamese markets are not just for well-established businesses.

"I'd suggest to other companies thinking about theirexpansion strategy [to look to Vietnam]. It is a country sizeable in size, easyto do businesses, and consumers are looking for innovation," he said asquoted by the article. "The Government has handled COVID well; fiscalpolicy has been strong; inflation is still in check; consumer spending is onthe rise; borders are open again - so it's a great opportunity now for peopleto be thinking about this country."/.

VNA